Is OPay Insured by NDIC?
As Nigeria’s digital banking space grows, many users want to know if their money is safe. A common question is whether fintech platforms like OPay are insured by the Nigeria Deposit Insurance Corporation (NDIC). The answer is nuanced, so let’s break it down.
What Is NDIC?
The NDIC is a government agency that protects depositors by insuring their funds in licensed banks. In the event of bank failure, NDIC compensates depositors up to a specified limit. This protection is one reason many Nigerians feel confident using traditional banks.
Understanding OPay’s Financial Services
OPay, owned by Opera Group, offers a wide range of financial services, including:
- Transfers and payments
- Utility bills
- Savings and investments (OWealth)
- POS agent banking
However, OPay itself is a licensed Mobile Money Operator (MMO), not a traditional deposit-taking commercial bank.
So, Is OPay Directly Insured by NDIC?
No, OPay is not directly insured by NDIC because NDIC coverage applies only to licensed deposit-taking institutions like commercial, microfinance, and merchant banks.
But Is My Money Still Safe With OPay?
Yes — here’s why:
- OPay is licensed by the Central Bank of Nigeria (CBN).
- It partners with licensed banks to safeguard funds.
- Money stored in your OPay wallet is often held in trust accounts with NDIC-insured banks.
How Does OPay Handle Savings (e.g. OWealth)?
When you save money via OPay’s OWealth product, your funds are actually managed by licensed fund managers and not kept in regular OPay wallet accounts. Though this means NDIC doesn’t insure those specific funds, they are regulated by the CBN and SEC.
Tips for Using OPay Safely
- Keep your PIN and account credentials secure.
- Enable all available security settings in the app.
- Regularly monitor your wallet balance.
- Only save funds you’re comfortable with on fintech platforms.
What About OPay Agents?
OPay has thousands of agents across Nigeria. These agents are part of its mobile money network but are not directly covered by NDIC. However, transactions done via agents are processed through OPay’s secure backend and follow CBN regulations.
Conclusion
While OPay is not directly insured by NDIC, your money is not entirely at risk. Thanks to regulatory oversight by the CBN and indirect partnerships with insured banks, your funds enjoy a reasonable degree of security. Still, for larger savings, consider traditional banks that are directly covered by NDIC.
To learn more about banks in Nigeria and their status, you might find these helpful:
